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Sherwin-Williams (SHW) Stock Up 34% in 6 Months: Here's Why
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Shares of The Sherwin-Williams Company (SHW - Free Report) have rallied 34% in the past six months. The stock has outperformed the industry’s rise of 27.4% over the same time frame. It has also topped the S&P 500’s 18.1% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look into the factors that are driving the stock’s price performance.
What’s Aiding the Stock?
Sherwin-Williams, carrying a Zacks Rank #3 (Hold), is benefiting from favorable demand in domestic markets and remains committed toward expanding its retail operations. It is witnessing higher architectural sales across all professional end markets, driven by residential repaint, commercial and property maintenance as well as selling price increases. It is also seeing higher sales in the Performance Coatings Group, driven by higher sales volumes in all end markets served and increase in selling prices.
The company is also focused on capturing a larger share of its end-markets, as is evident from increasing number of retail stores. It plans to add around 80 new stores in 2021 in the United States and Canada.
Sherwin-Williams’ cost-control initiatives, working capital reductions, supply chain optimization and productivity improvement is expected to yield margin benefits. Robust working capital management and efforts to cut operating costs has enabled the company to generate strong net cash flows from operations.
The company has a strong liquidity position and is using its cash strategically. It returned around $1.94 billion to its shareholders through dividend and share buybacks in first-half-2021 and also repurchased 6.4 million shares in the most recent quarter. It had remaining authorization to purchase 52.25 million shares through open market purchases at the end of the second quarter of 2021.
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 478.7% for the current year. The company’s shares have soared 150.2% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403% for the current year. The company’s shares have gained 29.6% in the past year. It currently flaunts a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 41.2% in the past year. It currently carries a Zacks Rank #2 (Buy).
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Sherwin-Williams (SHW) Stock Up 34% in 6 Months: Here's Why
Shares of The Sherwin-Williams Company (SHW - Free Report) have rallied 34% in the past six months. The stock has outperformed the industry’s rise of 27.4% over the same time frame. It has also topped the S&P 500’s 18.1% rise over the same period.
Image Source: Zacks Investment Research
Let’s take a look into the factors that are driving the stock’s price performance.
What’s Aiding the Stock?
Sherwin-Williams, carrying a Zacks Rank #3 (Hold), is benefiting from favorable demand in domestic markets and remains committed toward expanding its retail operations. It is witnessing higher architectural sales across all professional end markets, driven by residential repaint, commercial and property maintenance as well as selling price increases. It is also seeing higher sales in the Performance Coatings Group, driven by higher sales volumes in all end markets served and increase in selling prices.
The company is also focused on capturing a larger share of its end-markets, as is evident from increasing number of retail stores. It plans to add around 80 new stores in 2021 in the United States and Canada.
Sherwin-Williams’ cost-control initiatives, working capital reductions, supply chain optimization and productivity improvement is expected to yield margin benefits. Robust working capital management and efforts to cut operating costs has enabled the company to generate strong net cash flows from operations.
The company has a strong liquidity position and is using its cash strategically. It returned around $1.94 billion to its shareholders through dividend and share buybacks in first-half-2021 and also repurchased 6.4 million shares in the most recent quarter. It had remaining authorization to purchase 52.25 million shares through open market purchases at the end of the second quarter of 2021.
The SherwinWilliams Company Price and Consensus
The SherwinWilliams Company price-consensus-chart | The SherwinWilliams Company Quote
Other Stocks to Consider
Some better-ranked stocks in the basic materials space are Nucor Corporation (NUE - Free Report) , Dow Inc. (DOW - Free Report) and Cabot Corporation (CBT - Free Report) .
Nucor has a projected earnings growth rate of around 478.7% for the current year. The company’s shares have soared 150.2% in a year. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Dow has an expected earnings growth rate of around 403% for the current year. The company’s shares have gained 29.6% in the past year. It currently flaunts a Zacks Rank #1.
Cabot has an expected earnings growth rate of around 138.5% for the current fiscal. The company’s shares have rallied 41.2% in the past year. It currently carries a Zacks Rank #2 (Buy).